UBS Group AG Reduces Position in ADT Inc. $ADT

Key Points

• UBS Group AG sharply reduced its ADT stake in the fourth quarter, cutting holdings by 66.9% and selling more than 4.2 million shares. After the sale, UBS still owned about 2.1 million shares valued at roughly $16.9 million.
• ADT’s insiders were buying stock, with EVP Omar Khan and Director Daniel Joseph Houston both making large purchases in May. Insiders bought 58,530 shares worth about $400,179 over the last quarter.
• The company reported stronger-than-expected quarterly results and pays a dividend, with EPS of $0.23 beating estimates and revenue of $2.56 billion topping forecasts. ADT also declared a quarterly dividend of $0.055 per share, implying a 3.2% yield.

UBS Group AG cut its stake in shares of ADT Inc. (NYSE:ADT - Free Report) by 66.9% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,099,115 shares of the security and automation business's stock after selling 4,239,459 shares during the quarter. UBS Group AG owned about 0.26% of ADT worth $16,940,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in ADT. NewEdge Advisors LLC lifted its position in ADT by 503.0% during the first quarter. NewEdge Advisors LLC now owns 13,279 shares of the security and automation business's stock valued at $108,000 after purchasing an additional 11,077 shares during the period. Caxton Associates LLP acquired a new position in ADT during the first quarter valued at $296,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in ADT by 29.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,154,250 shares of the security and automation business's stock valued at $9,396,000 after purchasing an additional 262,480 shares during the period. Focus Partners Wealth lifted its position in ADT by 75.9% during the first quarter. Focus Partners Wealth now owns 54,363 shares of the security and automation business's stock valued at $442,000 after purchasing an additional 23,463 shares during the period. Finally, Sivia Capital Partners LLC acquired a new position in ADT during the second quarter valued at $93,000. 87.22% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at ADT

In related news, EVP Omar Khan purchased 7,280 shares of ADT stock in a transaction that occurred on Monday, May 11th. The stock was purchased at an average price of $6.88 per share, for a total transaction of $50,086.40. Following the transaction, the executive vice president directly owned 7,280 shares in the company, valued at approximately $50,086.40. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Daniel Joseph Houston purchased 36,450 shares of ADT stock in a transaction that occurred on Friday, May 8th. The shares were bought at an average price of $6.87 per share, with a total value of $250,411.50. Following the transaction, the director owned 74,812 shares in the company, valued at approximately $513,958.44. The trade was a 95.02% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have bought 58,530 shares of company stock worth $400,179 in the last quarter. Company insiders own 3.00% of the company's stock.

ADT Trading Up 0.2%

Shares of ADT stock opened at $6.81 on Wednesday. The firm has a 50-day simple moving average of $6.81 and a two-hundred day simple moving average of $7.66. The company has a market cap of $5.39 billion, a P/E ratio of 9.72 and a beta of 1.06. ADT Inc. has a fifty-two week low of $6.25 and a fifty-two week high of $8.94. The company has a debt-to-equity ratio of 1.94, a quick ratio of 0.67 and a current ratio of 0.84.

ADT (NYSE:ADT - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The security and automation business reported $0.23 earnings per share for the quarter, topping analysts' consensus estimates of $0.21 by $0.02. The business had revenue of $2.56 billion during the quarter, compared to the consensus estimate of $1.27 billion. ADT had a net margin of 12.12% and a return on equity of 19.23%. The company's revenue was up .9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.21 earnings per share. ADT has set its FY 2026 guidance at 0.890-0.890 EPS. As a group, equities analysts predict that ADT Inc. will post 0.87 earnings per share for the current fiscal year.

ADT Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 7th. Shareholders of record on Thursday, June 11th will be given a $0.055 dividend. The ex-dividend date is Thursday, June 11th. This represents a $0.22 dividend on an annualized basis and a dividend yield of 3.2%. ADT's dividend payout ratio is 31.43%.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the stock. The Goldman Sachs Group restated a "buy" rating and set a $10.40 target price on shares of ADT in a research report on Monday, March 2nd. Citigroup decreased their target price on shares of ADT from $10.00 to $8.50 and set a "buy" rating for the company in a research report on Wednesday, March 4th. UBS Group set a $7.50 target price on shares of ADT in a research report on Friday, May 1st. Barclays restated an "underweight" rating and set a $7.00 target price on shares of ADT in a research report on Friday, March 6th. Finally, Morgan Stanley decreased their price objective on shares of ADT from $9.00 to $7.00 and set an "equal weight" rating for the company in a research report on Tuesday, March 3rd. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $8.08.

About ADT

ADT Inc is a leading provider of security and automation solutions for residential and commercial customers. The company offers a comprehensive suite of products and services, including intrusion detection systems, video surveillance, fire and carbon monoxide monitoring, and integrated smart home automation platforms. Through professional installation, continuous monitoring, and a network of 24/7 monitoring centers, ADT helps customers protect their properties, assets and loved ones.

Founded in 1874 as the American District Telegraph Company, ADT has evolved from one of the first telegraph-based alarm services into a modern security technology enterprise.

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